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| Organized in Maryland   | IRS Employer Identification No.:  52-1937296 |
|-----------------------------------|--------------------------------------------------------|

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|                                                                                                                                |   | March 31,2010 |       |   | December 31,2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|------------------|--------|
| Assets                                                                                                                              |   |          |       |   |             |   |
| Equity in broker trading accounts                                                                                                   |   |          |       |   |             |   |
| Cash                                                                                                                                |   | $             | 16,988,951 |   |             | $      | 15,489,732 |   |
| Net unrealized gain on open futures contracts                                                                                       |   |          | 4,766,758  |   |             |   | 4,046,127 |   |
| Interest receivable                                                                                                                 |   |          | 4,288      |   |             |   | 1,408 |   |
| Deposits with broker                                                                                                                |   |          | 21,759,997 |   |             |   | 19,537,267 |   |
| Cash and cash equivalents                                                                                                           |   |          | 54,549,402 |   |             |   | 46,842,998 |   |
| Government sponsored enterprise notes, at fair value                                                                                |   |          | —    |   |             |   | 8,075,134 |   |
| General Partner 1% allocation receivable                                                                                            |   |          | —    |   |             |   | 81,664 |   |
| Total assets                                                                                                                        |   | $             | 76,309,399 |   |             | $      | 74,537,063 |   |
|                                                                                                                                |   |          |       |   |             |   |   |   |
| Liabilities and Partners’ Capital (Net Asset Value)                                                                           |   |          |       |   |             |   |   |   |
| Liabilities                                                                                                                         |   |          |       |   |             |   |   |   |
| Administrative expenses payable - General Partner                                                                                   |   | $             | 138,020    |   |             | $      | 138,147 |   |
| Commissions and other trading fees payable on open contracts                                                                        |   |          | 8,786      |   |             |   | 7,515 |   |
| General Partner management fee payable                                                                                              |   |          | 69,606     |   |             |   | 67,413 |   |
| General Partner 1% allocation payable                                                                                               |   |          | 13,489     |   |             |   | — |   |
| Trading Advisor management fee payable                                                                                              |   |          | 123,752    |   |             |   | 123,416 |   |
| Selling Agent fees payable - General Partner                                                                                        |   |          | 189,836    |   |             |   | 183,853 |   |
| Redemptions payable                                                                                                                 |   |          | 1,109,247  |   |             |   | 199,956 |   |
| Subscriptions received in advance                                                                                                   |   |          | 183,019    |   |             |   | 767,147 |   |
| Total liabilities                                                                                                                   |   |          | 1,835,755  |   |             |   | 1,487,447 |   |
| Partners’ Capital (Net Asset Value)                                                                                           |   |          |       |   |             |   |   |   |
| Class A Interests – 28,853.1045 units and 28,805.7820 units outstanding at March 31, 2010 and December 31, 2009, respectively |   |          | 74,473,644 |   |             |   | 73,049,616 |   |
| Total liabilities and partners’ capital (net asset value)                                                                     |   | $             | 76,309,399 |   |             | $      | 74,537,063 |   |

----

|                            | Description                                                  |   | Fair Value |       |   | % ofPartners’Capital(Net AssetValue) |   |
|---------------------------------|--------------------------------------------------------------|--------|------------|------------|--------|--------------------------------------------|--------|
|                            |                                                         |   |       |       |   |                                       |   |
| Long U.S. Futures Contracts     |                                                         |   |       |       |   |                                       |   |   |
|                            | Agricultural                                                 |   | $          | 151,513    |   |                                       |   | 0.20 | % |
|                            | Currency                                                     |   |       | (22,682    | )      |                                       |   | (0.03 | )% |
|                            | Energy                                                       |   |       | 404,251    |   |                                       |   | 0.54 | % |
|                            | Interest rate                                                |   |       |       |   |                                       |   |   |   |
|                            | EURO Dollars (340 contracts, Jun 2010 – Mar 2012)      |   |       | 874,837    |   |                                       |   | 1.17 | % |
|                            | Other                                                        |   |       | (100,664   | )      |                                       |   | (0.14 | )% |
|                            | Metal                                                        |   |       |       |   |                                       |   |   |   |
|                            | LME Nickel U.S. (45 contracts, Apr 2010 – Jul 2010)    |   |       | 1,245,323  |   |                                       |   | 1.67 | % |
|                            | LME Aluminum U.S. (229 contracts, Apr 2010 – Jul 2010) |   |       | 356,737    |   |                                       |   | 0.48 | % |
|                            | Other                                                        |   |       | 552,804    |   |                                       |   | 0.74 | % |
|                            | Stock index                                                  |   |       | 140,631    |   |                                       |   | 0.19 | % |
|                            | Net unrealized gain on open long U.S. futures contracts      |   |       | 3,602,750  |   |                                       |   | 4.82 | % |
|                            |                                                         |   |       |       |   |                                       |   |   |   |
| Short U.S. Futures Contracts    |                                                         |   |       |       |   |                                       |   |   |
|                            | Agricultural                                                 |   |       | 534,371    |   |                                       |   | 0.72 | % |
|                            | Currency                                                     |   |       | 16,063     |   |                                       |   | 0.02 | % |
|                            | Energy                                                       |   |       |       |   |                                       |   |   |   |
|                            | Natural Gas (99 contracts, May 2010 – Jan 2011)        |   |       | 1,057,699  |   |                                       |   | 1.42 | % |
|                            | Other                                                        |   |       | 117,043    |   |                                       |   | 0.16 | % |
|                            | Metal                                                        |   |       |       |   |                                       |   |   |   |
|                            | LME Aluminum U.S. (173 contracts, Apr 2010 – Jun 2010) |   |       | (1,000,733 | )      |                                       |   | (1.34 | )% |
|                            | LME Nickel U.S. (18 contracts, Apr 2010)                     |   |       | (570,684   | )      |                                       |   | (0.77 | )% |
|                            | Other                                                        |   |       | (674,694   | )      |                                       |   | (0.91 | )% |
|                            | Net unrealized loss on open short U.S. futures contracts     |   |       | (520,935   | )      |                                       |   | (0.70 | )% |
|                            |                                                         |   |       |       |   |                                       |   |   |   |
| Long Foreign Futures Contracts  |                                                         |   |       |       |   |                                       |   |   |
|                            | Agricultural                                                 |   |       | 71,838     |   |                                       |   | 0.10 | % |
|                            | Currency                                                     |   |       | 260,694    |   |                                       |   | 0.35 | % |
|                            | Energy                                                       |   |       | 78,512     |   |                                       |   | 0.11 | % |
|                            | Interest rate                                                |   |       |       |   |                                       |   |   |   |
|                            | LIF 3M EURIBOR (188 contracts, Jun 2010 – Mar 2012)    |   |       | 777,130    |   |                                       |   | 1.04 | % |
|                            | Other                                                        |   |       | 444,615    |   |                                       |   | 0.60 | % |
|                            | Metal                                                        |   |       | 154,514    |   |                                       |   | 0.21 | % |
|                            | Stock index                                                  |   |       | 272,553    |   |                                       |   | 0.37 | % |
|                            | Net unrealized gain on open long foreign futures contracts   |   |       | 2,059,856  |   |                                       |   | 2.78 | % |
|                            |                                                         |   |       |       |   |                                       |   |   |   |
| Short Foreign Futures Contracts |                                                         |   |       |       |   |                                       |   |   |
|                            | Agricultural                                                 |   |       | 20,190     |   |                                       |   | 0.03 | % |
|                            | Currency                                                     |   |       | (390,814   | )      |                                       |   | (0.52 | )% |
|                            | Interest rate                                                |   |       | (4,289     | )      |                                       |   | (0.01 | )% |
|                            | Net unrealized loss on open short foreign futures contracts  |   |       | (374,913   | )      |                                       |   | (0.50 | )% |
|                            |                                                         |   |       |       |   |                                       |   |   |   |
|                            | Net unrealized gain on openfutures contracts                 |   | $          | 4,766,758  |   |                                       |   | 6.40 | % |

----

|                                  |   |         | Description                                                               |   | Fair Value |       |   | % ofPartners’Capital(Net AssetValue) |   |
|---------------------------------------|--------|--------------|---------------------------------------------------------------------------|--------|------------|------------|--------|--------------------------------------------|--------|
|                                  |   |         |                                                                      |   |       |       |
| Government Sponsored Enterprise Notes |   |         |                                                                      |   |       |       |
| Face Value                            |   | MaturityDate |                                                                      |   |       |       |   |                                       |   |
| $8,000,000                            |   | 3/30/10      | Federal Home Loan Bank discount note (not callable), 1.10%                |   | $          | 8,075,134  |   |                                       |   | 11.05 | % |
|                                  |   |         | Total government sponsored enterprise notes (cost:  $8,039,111) |   | $          | 8,075,134  |   |                                       |   | 11.05 | % |
|                                  |   |         |                                                                      |   |       |       |   |                                       |   |   |   |
| Long U.S. Futures Contracts           |   |         |                                                                      |   |       |       |   |                                       |
|                                  |   |         | Agricultural                                                              |   | $          | 574,489    |   |                                       |   | 0.79 | % |
|                                  |   |         | Currency                                                                  |   |       | 3,305      |   |                                       |   | 0.00 | % |
|                                  |   |         | Energy                                                                    |   |       | (126,660   | )      |                                       |   | (0.17 | )% |
|                                  |   |         | Interest rate                                                             |   |       | 517,369    |   |                                       |   | 0.71 | % |
|                                  |   |         | Metal                                                                     |   |       |       |   |                                       |   |   |   |
|                                  |   |         | LME Copper U.S. (61 contracts, Jan 2010 – Mar 2010)                 |   |       | 1,045,669  |   |                                       |   | 1.43 | % |
|                                  |   |         | LME Aluminum U.S. (210 contracts, Jan 2010 – Apr 2010)              |   |       | 871,181    |   |                                       |   | 1.19 | % |
|                                  |   |         | Other (1)                                                                 |   |       | 828,527    |   |                                       |   | 1.13 | % |
|                                  |   |         | Stock index                                                               |   |       | 179,911    |   |                                       |   | 0.25 | % |
|                                  |   |         | Net unrealized gain on open long U.S. futures contracts                   |   |       | 3,893,791  |   |                                       |   | 5.33 | % |
|                                  |   |         |                                                                      |   |       |       |   |                                       |   |   |   |
| Short U.S. Futures Contracts          |   |         |                                                                      |   |       |       |   |                                       |
|                                  |   |         | Agricultural                                                              |   |       | 4,528      |   |                                       |   | 0.01 | % |
|                                  |   |         | Currency                                                                  |   |       | 531        |   |                                       |   | 0.00 | % |
|                                  |   |         | Energy                                                                    |   |       | (236,723   | )      |                                       |   | (0.32 | )% |
|                                  |   |         | Interest rate                                                             |   |       | 54,234     |   |                                       |   | 0.07 | % |
|                                  |   |         | Metal                                                                     |   |       |       |   |                                       |   |   |   |
|                                  |   |         | LME Copper U.S. (41 contracts, Jan 2010 – Feb 2010)                 |   |       | (413,731   | )      |                                       |   | (0.57 | )% |
|                                  |   |         | LME Aluminum U.S. (115 contracts, Jan 2010 – Feb 2010)              |   |       | (706,075   | )      |                                       |   | (0.97 | )% |
|                                  |   |         | Other                                                                     |   |       | (435,521   | )      |                                       |   | (0.60 | )% |
|                                  |   |         | Net unrealized loss on open short U.S. futures contracts                  |   |       | (1,732,757 | )      |                                       |   | (2.38 | )% |
|                                  |   |         |                                                                      |   |       |       |   |                                       |   |   |   |
| Long Foreign Futures Contracts        |   |         |                                                                      |   |       |       |   |                                       |
|                                  |   |         | Agricultural                                                              |   |       | 245,014    |   |                                       |   | 0.34 | % |
|                                  |   |         | Currency                                                                  |   |       | (59,087    | )      |                                       |   | (0.08 | )% |
|                                  |   |         | Energy                                                                    |   |       | 8,638      |   |                                       |   | 0.01 | % |
|                                  |   |         | Interest rate                                                             |   |       |       |   |                                       |   |   |   |
|                                  |   |         | LIF 3M EURIBOR (193 contracts, Mar 2010 – Dec 2011)                 |   |       | 744,291    |   |                                       |   | 1.02 | % |
|                                  |   |         | Other                                                                     |   |       | 227,206    |   |                                       |   | 0.31 | % |
|                                  |   |         | Metal                                                                     |   |       | 207,659    |   |                                       |   | 0.28 | % |
|                                  |   |         | Stock index                                                               |   |       | 402,633    |   |                                       |   | 0.55 | % |
|                                  |   |         | Net unrealized gain on open long foreign futures contracts                |   |       | 1,776,354  |   |                                       |   | 2.43 | % |
|                                  |   |         |                                                                      |   |       |       |   |                                       |   |   |   |
| Short Foreign Futures Contracts       |   |         |                                                                      |   |       |       |   |                                       |
|                                  |   |         | Agricultural                                                              |   |       | (3,721     | )      |                                       |   | (0.01 | )% |
|                                  |   |         | Currency                                                                  |   |       | 147,081    |   |                                       |   | 0.20 | % |
|                                  |   |         | Energy                                                                    |   |       | (54,715    | )      |                                       |   | (0.07 | )% |
|                                  |   |         | Interest rate                                                             |   |       | 20,094     |   |                                       |   | 0.03 | % |
|                                  |   |         | Net unrealized gain on open short foreign futures contracts               |   |       | 108,739    |   |                                       |   | 0.15 | % |
|                                  |   |         |                                                                      |   |       |       |   |                                       |   |   |   |
|                                  |   |         | Net unrealized gain on open futures contracts                             |   | $          | 4,046,127  |   |                                       |   | 5.53 | % |

----

|                                            |   | Three Months Ended March 31, |       |
|-------------------------------------------------|--------|------------------------------|------------|
|                                            |   | 2010                         |       |   | 2009 |   |
| Trading Gain (Loss)                             |   |                         |       |   |   |   |
| Net realized gain                               |   | $                            | 1,707,435  |   |   | $ | 3,492,782 |   |
| Net change in unrealized gain (loss)            |   |                         | 720,631    |   |   |   | (6,273,347 | ) |
| Brokerage commissions                           |   |                         | (31,496    | ) |   |   | (38,649 | ) |
| Net gain (loss) from trading                    |   |                         | 2,396,570  |   |   |   | (2,819,214 | ) |
|                                            |   |                         |       |   |   |   |   |   |
| Net Investment Loss                             |   |                         |       |   |   |   |   |   |
| Income                                          |   |                         |       |   |   |   |   |   |
| Interest income                                 |   |                         | 27,942     |   |   |   | 239,970 |   |
| Expenses                                        |   |                         |       |   |   |   |   |   |
| General Partner management fee                  |   |                         | 202,199    |   |   |   | 186,009 |   |
| General Partner 1% allocation                   |   |                         | 13,489     |   |   |   | (35,443 | ) |
| Trading Advisor management fee                  |   |                         | 183,795    |   |   |   | 144,825 |   |
| Selling Agent fees – General Partner      |   |                         | 551,452    |   |   |   | 507,297 |   |
| Administrative expenses – General Partner |   |                         | 251,755    |   |   |   | 223,821 |   |
| Total expenses                                  |   |                         | 1,202,690  |   |   |   | 1,026,509 |   |
| Administrative expenses waived                  |   |                         | (113,627   | ) |   |   | (96,897 | ) |
| Net total expenses                              |   |                         | 1,089,063  |   |   |   | 929,612 |   |
| Net investment loss                             |   |                         | (1,061,121 | ) |   |   | (689,642 | ) |
|                                            |   |                         |       |   |   |   |   |   |
| Net Income (Loss)                               |   | $                            | 1,335,449  |   |   | $ | (3,508,856 | ) |

|                                                    |   | Three Months Ended March 31, |        |
|---------------------------------------------------------|--------|------------------------------|-------------|
|                                                    |   | 2010                         |        |   | 2009 |   |
| Increase (decrease) in net asset value per Unit         |   | $                            | 45.19       |   |   | $ | (142.73 | ) |
|                                                    |   |                         |        |   |   |   |   |   |
| Net income (loss) per Unit                              |   | $                            | 46.25       |   |   | $ | (146.55 | ) |
| (based on weighted average number of units outstanding) |   |                         |        |   |   |   |   |   |
| Weighted average number of Units outstanding            |   |                         | 28,876.1688 |   |   |   | 23,943.2459 |   |

----

|                                                                                              |   | Three Months Ended March 31, |       |
|---------------------------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                                              |   | 2010                         |       |   | 2009 |   |
| Cash flows from operating activities                                                              |   |                         |       |   |   |   |
| Net income (loss)                                                                                 |   | $                            | 1,335,449  |   |   | $ | (3,508,856 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |   |                         |       |   |   |   |   |   |
| Net change in unrealized (gain) loss                                                              |   |                         | (720,631   | ) |   |   | 6,273,347 |   |
| Changes in                                                                                        |   |                         |       |   |   |   |   |   |
| U.S. Treasury securities                                                                          |   |                         | —    |   |   |   | (1,491,620 | ) |
| Interest receivable                                                                               |   |                         | (2,880     | ) |   |   | 409 |   |
| Commercial paper                                                                                  |   |                         | —    |   |   |   | 8,002,508 |   |
| Government sponsored enterprise notes                                                             |   |                         | 8,075,134  |   |   |   | 636,803 |   |
| Corporate notes                                                                                   |   |                         | —    |   |   |   | 4,013,516 |   |
| General Partner 1% allocation receivable/payable                                                  |   |                         | 95,153     |   |   |   | (246,003 | ) |
| Administrative expenses payable – General Partner                                           |   |                         | (127       | ) |   |   | 731 |   |
| Commissions and other trading fees payable on open contracts                                      |   |                         | 1,271      |   |   |   | 585 |   |
| General Partner management fee payable                                                            |   |                         | 2,193      |   |   |   | (2,464 | ) |
| Trading Advisor management fee payable                                                            |   |                         | 336        |   |   |   | 5,042 |   |
| Trading Advisor incentive fee payable                                                             |   |                         | —    |   |   |   | (2,303,426 | ) |
| Selling Agent fees payable – General Partner                                                |   |                         | 5,983      |   |   |   | (6,718 | ) |
| Net cash provided by operating activities                                                         |   |                         | 8,791,881  |   |   |   | 11,373,854 |   |
|                                                                                              |   |                         |       |   |   |   |   |   |
| Cash flows from financing activities                                                              |   |                         |       |   |   |   |   |   |
| Subscriptions                                                                                     |   |                         | 1,425,477  |   |   |   | 5,948,449 |   |
| Subscriptions received in advance                                                                 |   |                         | 183,019    |   |   |   | 1,584,948 |   |
| Redemptions                                                                                       |   |                         | (1,194,754 | ) |   |   | (5,598,039 | ) |
| Net cash provided by financing activities                                                         |   |                         | 413,742    |   |   |   | 1,935,358 |   |
|                                                                                              |   |                         |       |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                         |   |                         | 9,205,623  |   |   |   | 13,309,212 |   |
| Cash and cash equivalents, beginning of period                                                    |   |                         | 62,332,730 |   |   |   | 27,745,890 |   |
| Cash and cash equivalents, end of period                                                          |   | $                            | 71,538,353 |   |   | $ | 41,055,102 |   |
|                                                                                              |   |                         |       |   |   |   |   |   |
| End of period cash and cash equivalents consists of                                               |   |                         |       |   |   |   |   |   |
| Cash in broker trading accounts                                                                   |   | $                            | 16,988,951 |   |   | $ | 9,830,614 |   |
| Cash and cash equivalents                                                                         |   |                         | 54,549,402 |   |   |   | 31,224,488 |   |
| Total end of period cash and cash equivalents                                                     |   | $                            | 71,538,353 |   |   | $ | 41,055,102 |   |
|                                                                                              |   |                         |       |   |   |   |   |   |
| Supplemental disclosure of cash flow information                                                  |   |                         |       |   |   |   |   |   |
| Prior period redemptions paid                                                                     |   | $                            | 199,956    |   |   | $ | 2,852,196 |   |
| Prior period subscriptions received in advance                                                    |   | $                            | 767,147    |   |   | $ | 1,513,541 |   |
|                                                                                              |   |                         |       |   |   |   |   |   |
| Supplemental schedule of non-cash financing activities                                            |   |                         |       |   |   |   |   |   |
| Redemptions payable                                                                               |   | $                            | 1,109,247  |   |   | $ | 459,639 |   |

----

|                              |   | Units  |        |   | Amount |   |
|-----------------------------------|--------|--------|-------------|--------|--------|--------|
| Three Months Ended March 31, 2010 |   |   |        |   |   |   |
| Balance at December 31, 2009      |   |   | 28,805.7820 |   |   | $      | 73,049,616 |   |
| Net income                        |   |   |        |   |   |   | 1,335,449 |   |
| Subscriptions                     |   |   | 877.8792    |   |   |   | 2,192,624 |   |
| Redemptions                       |   |   | (830.5567   | )      |   |   | (2,104,045 | ) |
| Balance at March 31, 2010         |   |   | 28,853.1045 |   |   | $      | 74,473,644 |   |
|                              |   |   |        |   |   |   |   |   |
| Three Months Ended March 31, 2009 |   |   |        |   |   |   |   |   |
| Balance at December 31, 2008      |   |   | 23,461.0047 |   |   | $      | 66,797,883 |   |
| Net loss                          |   |   |        |   |   |   | (3,508,856 | ) |
| Subscriptions                     |   |   | 2,672.4652  |   |   |   | 7,461,990 |   |
| Redemptions                       |   |   | (1,157.8259 | )      |   |   | (3,205,482 | ) |
| Balance at March 31, 2009         |   |   | 24,975.6440 |   |   | $      | 67,545,535 |   |

|           | Net Asset Value Per Unit |              |
|----------------|--------------------------|-------------------|
| March 31, 2010 |                     | December 31, 2009 |   |   | March 31, 2009 |   |   | December 31, 2008 |   |
|           |                     |              |   |   |   |   |   |   |   |   |
| $              | 2,581.13                 |              | $ | 2,535.94 |   |   | $ | 2,704.46 |   |   | $ | 2,847.19 |   |

----

| 1. | Organization and Summary of Significant Accounting Policies |
|----|-------------------------------------------------------------|

----

|   | Level 1 – | Fair value is based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical instruments.  Financial instruments utilizing Level 1 inputs include exchange-traded derivatives and money market funds. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 2 – | Fair value is based on quoted prices for similar instruments in active markets and inputs other than quoted prices that are observable for the financial instrument, such as interest rates and yield curves that are observable at commonly quoted intervals using a market approach.  Financial instruments utilizing Level 2 inputs include forward currency contracts and government sponsored enterprise notes. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3 – | Fair value is based on valuation techniques in which one or more significant inputs are unobservable.  The Fund has no financial instruments utilizing Level 3 inputs. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | Fair Value Disclosures |
|----|------------------------|

| At March 31, 2010                             |   |    |      |
|-----------------------------------------------|--------|---------|-----------|
|                                          |   | Level 1 |      |   | Level 2 |   |   | Total |   |
| Equity in broker trading accounts:            |   |    |      |   |   |   |   |   |   |
| Net unrealized gain on open futures contracts |   | $       | 4,766,758 |   |   | $ | — |   |   | $ | 4,766,758 |   |
| Cash and cash equivalents:                    |   |    |      |   |   |   |   |   |   |   |   |   |
| Money market funds                            |   |    | 8,657     |   |   |   | — |   |   |   | 8,657 |   |
| Total                                         |   | $       | 4,775,415 |   |   | $ | — |   |   | $ | 4,775,415 |   |

| At December 31, 2009                          |   |    |       |
|-----------------------------------------------|--------|---------|------------|
|                                          |   | Level 1 |       |   | Level 2 |   |   | Total |   |
| Equity in broker trading accounts:            |   |    |       |   |   |   |   |   |   |
| Net unrealized gain on open futures contracts |   | $       | 4,046,127  |   |   | $ | — |   |   | $ | 4,046,127 |   |
| Cash and cash equivalents:                    |   |    |       |   |   |   |   |   |   |   |   |   |
| Money market funds                            |   |    | 45,790,925 |   |   |   | — |   |   |   | 45,790,925 |   |
| Government sponsored enterprise notes         |   |    | —    |   |   |   | 8,075,134 |   |   |   | 8,075,134 |   |
| Total                                         |   | $       | 49,837,052 |   |   | $ | 8,075,134 |   |   | $ | 57,912,186 |   |

----

| 3. | Derivative Instruments Disclosures |
|----|------------------------------------|

|                                          |   | Derivative Assets and Liabilities, at fair value |      |
|-----------------------------------------------|--------|--------------------------------------------------|-----------|
| Statements of Financial Condition Location    |   | Assets                                           |      |   | Liabilities |   |   | Net |   |   | Number of open contracts |   |
| Net unrealized gain on open futures contracts |   |                                             |      |   |   |   |   |   |   |   |   |   |
| Types of exposure                             |   |                                             |      |   |   |   |   |   |   |   |   |   |
| Agricultural                                  |   | $                                                | 892,887   |   |   | $ | (114,975 | ) |   | $ | 777,912 |   |   |   | 653 |   |
| Currency                                      |   |                                             | 802,243   |   |   |   | (938,982 | ) |   |   | (136,739 | ) |   |   | 505 |   |
| Energy                                        |   |                                             | 1,665,155 |   |   |   | (7,650 | ) |   |   | 1,657,505 |   |   |   | 383 |   |
| Interest rate                                 |   |                                             | 2,264,865 |   |   |   | (273,236 | ) |   |   | 1,991,629 |   |   |   | 1,086 |   |
| Metal                                         |   |                                             | 2,593,356 |   |   |   | (2,530,089 | ) |   |   | 63,267 |   |   |   | 914 |   |
| Stock index                                   |   |                                             | 463,065   |   |   |   | (49,881 | ) |   |   | 413,184 |   |   |   | 320 |   |
| Net unrealized gain on open futures contracts |   | $                                                | 8,681,571 |   |   | $ | (3,914,813 | ) |   | $ | 4,766,758 |   |   |   | 3,861 |   |

|                                 |   | Location of gain (loss) in statements of operations |
|--------------------------------------|--------|-----------------------------------------------------|
| Types of Exposure                    |   | Net realized gain (loss)                            |   |   | Number of realized contracts |   |   | Net change in unrealized gain (loss) |
| Futures contracts                    |   |                                                |   |   |   |   |   |   |
| Agricultural                         |   | $                                                   | 109,522 |   |   |   | 921 |   |   | $ | (42,398 | ) |
| Currency                             |   |                                                | 1,761,195 |   |   |   | 654 |   |   |   | (228,569 | ) |
| Energy                               |   |                                                | (1,396,281 | ) |   |   | 998 |   |   |   | 2,066,965 |   |
| Interest rate                        |   |                                                | 572,878 |   |   |   | 831 |   |   |   | 428,435 |   |
| Metal                                |   |                                                | 725,405 |   |   |   | 606 |   |   |   | (1,334,442 | ) |
| Stock index                          |   |                                                | (62,224 | ) |   |   | 926 |   |   |   | (169,360 | ) |
| Net realized gain                    |   | $                                                   | 1,710,495 |   |   |   | 4,936 |   |   |   |   |   |
| Net change in unrealized gain (loss) |   |                                                |   |   |   |   |   |   |   | $ | 720,631 |   |

|                                          |   | Derivative Assets and Liabilities, at fair value |      |
|-----------------------------------------------|--------|--------------------------------------------------|-----------|
| Statements of Financial Condition Location    |   | Assets                                           |      |   | Liabilities |   |   | Net |   |   | Number of open contracts |   |
| Net unrealized gain on open futures contracts |   |                                             |      |   |   |   |   |   |   |   |   |   |
| Types of exposure                             |   |                                             |      |   |   |   |   |   |   |   |   |   |
| Agricultural                                  |   | $                                                | 1,039,795 |   |   | $ | (219,485 | ) |   | $ | 820,310 |   |   |   | 656 |   |
| Currency                                      |   |                                             | 462,740   |   |   |   | (370,910 | ) |   |   | 91,830 |   |   |   | 349 |   |
| Energy                                        |   |                                             | 21,087    |   |   |   | (430,547 | ) |   |   | (409,460 | ) |   |   | 210 |   |
| Interest rate                                 |   |                                             | 1,915,783 |   |   |   | (352,589 | ) |   |   | 1,563,194 |   |   |   | 1,121 |   |
| Metal                                         |   |                                             | 3,170,299 |   |   |   | (1,772,590 | ) |   |   | 1,397,709 |   |   |   | 830 |   |
| Stock index                                   |   |                                             | 582,780   |   |   |   | (236 | ) |   |   | 582,544 |   |   |   | 240 |   |
| Net unrealized gain on open futures contracts |   | $                                                | 7,192,484 |   |   | $ | (3,146,357 | ) |   | $ | 4,046,127 |   |   |   | 3,406 |   |

----

|                                 |   | Location of gain (loss) in statements of operations |
|--------------------------------------|--------|-----------------------------------------------------|
| Types of Exposure                    |   | Net realized gain (loss)                            |   |   | Number of realized contracts |   |   | Net change in unrealized gain (loss) |
| Futures contracts                    |   |                                                |   |   |   |   |   |   |
| Agricultural                         |   | $                                                   | 239,523 |   |   |   | 1,594 |   |   | $ | (1,533,895 | ) |
| Currency                             |   |                                                | (1,206,689 | ) |   |   | 551 |   |   |   | (382,548 | ) |
| Energy                               |   |                                                | 1,695,631 |   |   |   | 719 |   |   |   | (471,857 | ) |
| Interest rate                        |   |                                                | 1,912,449 |   |   |   | 2,056 |   |   |   | (1,490,244 | ) |
| Metal                                |   |                                                | 1,720,519 |   |   |   | 567 |   |   |   | (1,976,315 | ) |
| Stock index                          |   |                                                | (842,613 | ) |   |   | 607 |   |   |   | (418,488 | ) |
| Net realized gain                    |   | $                                                   | 3,518,820 |   |   |   | 6,094 |   |   |   |   |   |
| Net change in unrealized gain (loss) |   |                                                |   |   |   |   |   |   |   | $ | (6,273,347 | ) |

| 4. | General Partner |
|----|-----------------|

|   | ■ | General Partner management fee – the Fund incurs a monthly fee equal to 1/12th of 1.10% of the Fund’s month-end net asset value, payable in arrears. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | ■ | Selling Agent fees – the Fund incurs a monthly fee equal to 1/12th of 3.00% of the Fund’s month-end net asset value, payable in arrears.  The General Partner, in turn, pays selling agent fees to the respective selling agents.  If selling agent fees are not paid to the selling agents, or the General Partner was the selling agent, such portions of the selling agent fees are retained by the General Partner. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Trading Advisor |
|----|-----------------|

| 6. | Deposits with Brokers |
|----|-----------------------|

----

| 7. | Administrative Expenses |
|----|-------------------------|

| 8. | Subscriptions, Distributions and Redemptions |
|----|----------------------------------------------|

| 9. | Trading Activities and Related Risks |
|----|--------------------------------------|

----

|                                          |   | March 31, 2010 |       |   | December 31, 2009 |   |
|-----------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
| Gross unrealized gains                        |   | $              | 8,681,571  |   |              | $      | 7,192,484 |   |
| Gross unrealized losses                       |   |           | (3,914,813 | )      |              |   | (3,146,357 | ) |
| Net unrealized gain on open futures contracts |   | $              | 4,766,758  |   |              | $      | 4,046,127 |   |

| 10. | Indemnifications |
|-----|------------------|

| 11. | Interim Financial Statements |
|-----|------------------------------|

----

| 12. | Financial Highlights |
|-----|----------------------|

|                                                        |   | 2010   |     |   | 2009   |   |
|-------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Per Unit Operating Performance                              |   |   |     |   |   |   |
| Net asset value per Unit at beginning of period             |   | $      | 2,535.94 |   |   | $      | 2,847.19 |   |
| Income (loss) from operations                               |   |   |     |   |   |   |   |   |
| Gain (loss) from trading (1)                                |   |   | 81.94    |   |   |   | (113.93 | ) |
| Net investment loss (1)                                     |   |   | (36.75   | )      |   |   | (28.80 | ) |
| Total income (loss) from operations                         |   |   | 45.19    |   |   |   | (142.73 | ) |
|                                                        |   |   |     |   |   |   |   |   |
| Net asset value per Unit at end of period                   |   | $      | 2,581.13 |   |   | $      | 2,704.46 |   |
|                                                        |   |   |     |   |   |   |   |   |
| Total return (5)                                            |   |   | 1.78     | %      |   |   | (5.01 | )% |
|                                                        |   |   |     |   |   |   |   |   |
| Other Ratios (ratios to average net asset value)            |   |   |     |   |   |   |   |   |
| Expenses prior to General Partner 1% allocation (2) (3) (4) |   |   | 5.92     | %      |   |   | 5.81 | % |
| General Partner 1% allocation (5)                           |   |   | 0.02     | %      |   |   | (0.05 | )% |
| Total expenses                                              |   |   | 5.94     | %      |   |   | 5.76 | % |
|                                                        |   |   |     |   |   |   |   |   |
| Net investment loss (2) (3) (4) (6)                         |   |   | (5.76    | )%     |   |   | (4.36 | )% |

----

----

----

----

|                             |   | January |     |   | February |   |     | March  |   |   | Total    |   |
|----------------------------------|--------|---------|----------|--------|----------|--------|----------|--------|--------|--------|----------|--------|
|                             |   |    |     |   |     |   |     |   |   |   |     |   |
| Units redeemed                   |   |    | 86.3733  |   |     |   | 314.4311 |   |   |   | 429.7523 |   |   |   | 830.5567 |   |
| Average net asset value per Unit |   | $       | 2,470.82 |   |     | $      | 2,485.08 |   |   | $      | 2,581.13 |   |   | $ | 2,533.30 |   |

----

| Exhibit No. | Description of Exhibit                                                                                                                              |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                |
| 1.1*        | Form of Selling Agreement.                                                                                                                          |
|        |                                                                                                                                                |
| 3.1*        | Certificate of Limited Partnership of Sage Fund Limited Partnership.                                                                                |
|        |                                                                                                                                                |
| 3.2*        | Second Amended and Restated Limited Partnership Agreement of Sage Fund Limited Partnership.                                                         |
|        |                                                                                                                                                |
| 10.1*       | Form of Subscription Agreement.                                                                                                                     |
|        |                                                                                                                                                |
| 10.2**      | Advisory Agreement by and among the Fund, the General Partner and Altis Partners (Jersey) Limited dated August 8, 2007.                             |
|        |                                                                                                                                                |
| 10.3*       | Amendment to Advisory Agreement by and among the Fund, the General Partner and Altis Partners (Jersey) Limited dated August 27, 2007.               |
|        |                                                                                                                                                |
| 10.4*       | Futures Account Agreement dated January 21, 2001 by and among the Fund, the General Partner and Carr Futures Inc. (subsequently, Newedge USA, LLC). |
|        |                                                                                                                                                |
| 10.5*       | Corporate Cash Account Management Agreement dated September 25, 2007 by and among the Fund, the General Partner and UBS Financial Services, Inc.    |
|        |                                                                                                                                                |
| 31.01       | Certification of Chief Executive Officer of the General Partner in accordance with Section 302 of the Sarbanes-Oxley Act of 2002                    |
|        |                                                                                                                                                |
| 31.02       | Certification of Chief Financial Officer of the General Partner in accordance with Section 302 of the Sarbanes-Oxley Act of 2002                    |
|        |                                                                                                                                                |
| 32.01       | Certification of Chief Executive Officer of the General Partner in accordance with Section 906 of the Sarbanes-Oxley Act of 2002                    |
|        |                                                                                                                                                |
| 32.02       | Certification of Chief Financial Officer of the General Partner in accordance with Section 906 of the Sarbanes-Oxley Act of 2002                    |

----

| Date:  May 14, 2010  | SAGE FUND LIMITED PARTNERSHIP |
|-------------------------------------|-------------------------------|
|                                |                          |   |
|                                | By:                           | Steben & Company, Inc. |
|                                |                          | General Partner |
|                                |                          |   |
|                                | By:                           | /s/ Kenneth E. Steben |
|                                | Name:                    | Kenneth E. Steben |
|                                | Title:                        | President, Chief Executive Officer and Director of the General Partner |
|                                |                          | (Principal Executive Officer) |
|                                |                          |   |
|                                | By:                      | /s/ Carl A. Serger |
|                                | Name:                    | Carl A. Serger |
|                                | Title:                        | Chief Financial Officer and Director of the General Partner |
|                                |                          | (Principal Financial and Accounting Officer) |

----